UEM Group Awarded Second Penang Bridge Project

KUALA LUMPUR, Aug 2 (Bernama) -- The awarding of the second Penang Bridge project to Malaysia's leading conglomerate, UEM Group is expected to further boost the profile of the group, say industry analysts here.

Prime Minister Datuk Seri Abdullah Ahmad Badawi today announced the awarding of the project to UEM, which is wholly-owned by Khazanah Nasional, the government investment arm. The group, which is actively seeking overseas projects, has been awarded the concession to build, manage and operate and maintain the second Penang bridge project.

An industry analyst told Bernama that the vote of confidence given by the Malaysian government, would assist the UEM Group in securing overseas projects. In announcing the award, Abdullah cited UEM's extensive expertise and experience and the fact that it is the concession holder for the existing Penang Bridge as the winning factors. The second bridge to Penang Island is expected to solve traffic woes on present Penang Bridge.

Abdullah said the Cabinet also gave the green light for the Penang monorail and second Penang bridge projects under the Ninth Malaysia Plan (9MP) to be built through the private finance initiatives(PFI). The 24km bridge is estimated to cost RM2.8 billion and will connect Batu Kawan in Seberang Prai to Batu Maung on the island. The analyst said with the expertise, capabilities, experienced manpower, strengths, track record, financial resources, and sound management, the project would be completed as planned.

It would also raise the group's future earnings, he added. UEM Group has been entrusted with the responsibility of developing infrastructures and value-added services in six core industries namely expressways, engineering and construction, healthcare, environmental services, property, manufacturing and information communications technology. Among projects undertaken by the group include the construction of the North-South Expressway, the ELITE highway. UEM Group has also contributed to designing and constructing some of Malaysia's top infrastructure projects. As for its overseas ventures, the group has successfully acquired expressway projects in the Philippines, India, and the Middle East. The group's share price on the stock exchange is expected to see an impact following the positive news.

[via BERNAMA.]

Through the PFI, Abdullah said the financial risks associated with the projects would be borne by the private sector while the government could use their expertise and efficiency to undertake complex infrastructure projects.

The government would provide the support and facilitate the undertaking of these projects by the private sector, he said.

This showed the government's commitment to further streamline the privatisation programme via the PFI, besides encouraging the private sector to be the catalyst for economic growth.

[via BERNAMA.]

[Image by NST.]